Just Dew It Corporation reports the following balance sheet information. Prepare
ID: 1170960 • Letter: J
Question
Just Dew It Corporation reports the following balance sheet information.
Prepare the common-size balance sheet for Just Dew It. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
Assets
Current assets
Cash $ 8,250 %
Accounts receivable 34,500 %
Inventory 58,500 %
Total $ 101,250 %
Fixed assets
Net plant and equipment $ 273,750 %
Total assets $ 375,000 %
Liabilities and Owners’ Equity
Current liabilities
Accounts payable $ 43,500 %
Notes payable 29,625 %
Total $ 73,125 %
Long-term debt $ 45,000 %
Owners' equity
Common stock and paid-in surplus $ 60,000 %
Accumulated retained earnings 196,875 %
Total $ 256,875 %
Total liabilities and owners' equity $ 375,000
Explanation / Answer
Under preparation of common-size balance sheet;each item is represented as a % of total assets/total liabilities and owner's equity.For example;Accounts Payable would be =(43500/375000)=11.6% and so on.
Assets Current assets Cash 8250 2.2% Accounts receivable 34500 9.2% Inventory 58500 15.6% Total 101250 27% Fixed assets Net plant and equipment 273750 73% Total assets 375000 100% Liabilities and owners equity Current Liabilities Accounts Payable 43500 11.6% Notes Payable 29625 7.9% Total 73125 19.5% Long term debt 45000 12% Owners equity Common stock and paid-in surplus 60000 16% Accumulated retained earnings 196875 52.5% Total 256875 68.5% Total Liabilities and owners equity 375000 100%Related Questions
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